The price of Bitcoin has crashed and dropped over 10% today following the global market turbulence, caused by the ongoing tariff war launched by President Trump administration against two dozen countries.
While the US stock markets slumped on previous week’s closing, the Asian markets on Monday began with a bloodbath, with Japan’s Nikkei 225 falling 8% and China’s Hang Seng plummeting 13% on opening.
The crypto market too experienced sufficient blowback, with Bitcoin and all major cryptocurrencies experiencing extreme volatility in the past 24 hours. Bitcoin started showing increased selling pressure with it falling from $83,400 to as low as $74,800 hours later while coinciding with drastic drops in Asian markets.
As Bitcoin is known for its volatility and sharp price actions, its price is influenced by every major event in geopolitics and global trade markets, with it now caught in the tariff war. This crash of 10% suggests why it’s a risk asset and how unpredictable its price movements are.
At the time of writing, Bitcoin price is trading at $74,739 – down 10.15% in the past 24 hours. It has a 24 hour trading volume of $53.92 billion, which has increased notably by 283% today.
With the drop, Bitcoin has loosened its key support near the $81,000 range from where a potential bounce was expected, but now it’s out of the play.
Now Bitcoin’s price is pulling towards $73,800, where it has the next major support before falling into a range seen in the U.S. pre-election era.
Bitcoin on Death Cross; Could it be a bottom?
While Bitcoin continues falling, several analysts are putting their theory into work with some expecting the trend to become bearish on the long run.
A popular crypto trader and analyst, HoneyXBT presents her technical analysis and highlights the “death cross” on a 10-day chart. A death cross is a trading pattern occurs when a short-term moving average (likely the 50-day) crosses below a longer-term moving average (likely the 200-day), typically signaling a bearish trend and potential further price declines.
While the price appears to have a further downside, Honey’s analysis also marks a “bottom” annotation, suggesting a possible reversal point as a similar scenario had played out in August 2024. Although the U.S election hype favoured the bullish side at that time and now market lacks any significant event that could bring back major attention to Bitcoin’s bullish side.
Now the U.S. stock markets are going to have weekly opening, it will be closely seen by all market players and if it’s any bullish, Bitcoin price is expected to have a strong bounce and potentially mark a bottom ahead of a new rally.
Also read: ETH price drops below $1600 as crypto market cap crashes 6%
